Make a brief discussion on Disney's investment. What kind of competitive advantages possessed by Disney can...
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Make a brief discussion on Disney's investment. What kind of competitive advantages possessed by Disney can be tied to the return on investment as displayed in table 6.10? Company Disney Vale Baidu Tata Motors Bookscape Table 6.10 RETURN ON CAPITAL AND COST OF CAPITAL COMPARISON (VALUES IN MILLIONS) Return on Cost of Cash BV of Capital Capital (%) Capital (%) 12.61 10.41 30.05 20.99 9.28 EBIT (1-1) BV of Debt BV of Equity $6,920 $16,328 $41,958 $3,387 $12,432 $49,246 9,111 13,561 120,905 471,489 $1,775 $12,136 $54,899 $75,974 $5,818 $119,402 27,215 10,456 330,056 225,562 $8,250 $1,250 30,320 *575,983 $19,136 7.81 8.20 12.42 11.44 10.30 ROC- Cost of Capital (%) 4.80 2.22 17.63 9.55 -1.02 Make a brief discussion on Disney's investment. What kind of competitive advantages possessed by Disney can be tied to the return on investment as displayed in table 6.10? Company Disney Vale Baidu Tata Motors Bookscape Table 6.10 RETURN ON CAPITAL AND COST OF CAPITAL COMPARISON (VALUES IN MILLIONS) Return on Cost of Cash BV of Capital Capital (%) Capital (%) 12.61 10.41 30.05 20.99 9.28 EBIT (1-1) BV of Debt BV of Equity $6,920 $16,328 $41,958 $3,387 $12,432 $49,246 9,111 13,561 120,905 471,489 $1,775 $12,136 $54,899 $75,974 $5,818 $119,402 27,215 10,456 330,056 225,562 $8,250 $1,250 30,320 *575,983 $19,136 7.81 8.20 12.42 11.44 10.30 ROC- Cost of Capital (%) 4.80 2.22 17.63 9.55 -1.02
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Answer rating: 100% (QA)
In Table 610 we can see the return on capital ROC and cost of capital for various companies including Disney Disney with a return on capital of 781 an... View the full answer
Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
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